How to Identify a Cryptocurrency Cloud Mining Scam

From mining to the trading aspect of the cryptocurrency industry, scammers are on the loose. They always look for new ways to trick people and rob them off their cryptocurrencies and cash. Cloud mining scam sites are defrauding mining community members and amateurs. If you’re in the camp of people who would prefer cloud mining to hardware mining, you need to be vigilant to avoid being scammed.

This is the first sure sign that the cloud mining company is a scam. The importance of having a registered domain name cannot be overemphasized. However, this doesn’t mean that every contractor with a registered domain is legit.

2. They Don’t Operate for Long

These scammers usually invest some money in the scam for payout. They use it to get more people to trust in them and pay for subscriptions. When they have enough money from different subscribers, they stop paying out and disappear. Then start the circle again with a new name and website. This is why you should be wary of contractors with little or no history.

3. They are Foreigners With a Registered Company

These scammers take the time to register their company. However, they typically register as foreigners since it’s easier to fake identity as a foreigner. A company might be registered in the United States with an Abribian’s identity as the face.

4. They Don’t Show Proof of Equipment

A real cloud mining company would be happy to present you with ample proof of equipment when you ask. The scammers, on the other hand, become anxious when they are asked for proof of equipment. Again, this doesn’t mean that anyone who shows you proof of equipment is legit.

5. They Host Loud Promotions

These scammers host promotions for their services on different avenues but they do all of this without showing proof of equipment.

6. They Work With Comparison Sites

Sometimes, scammers make deals with comparison sites. They give them a share of their gains and the sites, in return, claim that the scammer is a verified cloud mining service provider.